The Capital One Venture Rewards Credit Card offers a lot of potential value to new cardholders, but you’ll need to know how to make the most of its perks and rewards.

To start earning back your annual fee of $95, you’ll want to take advantage of this card’s generous sign-up bonus and travel benefits. But you need to be aware of how to qualify for and activate your perks to fully benefit.

• Earn the sign-up bonus
• Start booking travel through Capital One
• Apply for TSA PreCheck® or Global Entry
• Use the $50 hotel experience credit

1. Earn the sign-up bonus

The best way to maximize the value of the Capital One Venture Rewards Credit Card in your first few months of card ownership is to earn the sign-up bonus.

Currently, you earn a bonus of 75,000 miles after spending at least $4,000 on eligible purchases in the first 3 months after opening the account. But you might have qualified for a different bonus depending on how and when you applied.

Those current bonus miles are worth $750 on airfare or hotels when redeemed through Capital One Travel, but you might get even more value from your bonus if you transfer to one of Capital One’s partner programs. 

Make sure to check available redemptions and to research Credit Karma’s estimated point values before deciding how to use your rewards.

2. Start booking travel through Capital One

Capital One rewards you for booking your trips and accommodations through its dedicated travel portal. 

When you book through Capital One Travel, you’ll earn 5 miles per $1 on hotels, vacation rentals and rental cars.

Plus, you’ll earn 2 miles for $1 from all other purchases made with the card. 

When it’s time to redeem your points for travel, you might be able to maximize your value by transferring your points to one of Capital One’s transfer partners. For purchases, though, Capital One Travel is likely the best option.

3. Apply for TSA PreCheck® or Global Entry

The Capital One Venture Rewards Credit Card provides a statement credit of up to $120 every four years to cover the application fee for TSA PreCheck® or Global Entry. These programs are designed to get you through airport security more quickly. 

Choosing the right program for your needs is straightforward. TSA PreCheck speeds up the security checks at U.S. airports. Global Entry provides the same benefit while also helping you to get faster U.S. Customs clearance when entering the country.

If you haven’t signed up for one of these programs, be aware that you must complete the necessary application process to use these benefits. While your credit card covers the cost of the application with a statement credit, it doesn’t speed the processing time of your application.

4. Use the $50 hotel experience credit

The $50 hotel experience credit included with the Capital One Venture Rewards Credit Card effectively offsets over half of the card’s $95 annual fee.

When you book a hotel stay through Capital One’s Lifestyle Collection, you can redeem the credit at checkout for such things as dining, drinks at the bar or other activities. Keep in mind that amenities vary by each property and are subject to availability.

While this benefit comes with meaningful value, keep in mind that it’s limited only to Lifestyle Collection properties. Depending on available rates, it might save you more money in the long run to book at another hotel not included in the collection.

Next steps

The Capital One Venture Rewards Credit Card comes with additional benefits, like complimentary Hertz Five Star rental car status, but the perks highlighted above are most likely to deliver value during the early stages of your card membership.
Once you start using your card, you might find it has a few gaps. For example, if you’re looking to maximize your rewards balance for redemptions, you may want to add another Capital One card to improve on any non-travel rewards rates you get from the Capital One Venture Rewards Credit Card. If you combine your rewards right, you might end up with more miles to redeem for your next travel booking.

The Blue Cash Preferred® Card from American Express offers plenty of value for your, but you’ll have to know its details to reap all the benefits.

You can start earning extra value for your spending right away thanks to the $0 intro annual fee for the first year, then $95. But after that first year, you might want to know all the ways to start earning rewards that can cover that cost.

• Earn the welcome bonus
• Learn the spending categories … and their limits
• Get the $84 Disney Bundle credit
• Consider the 0% intro APR for big purchases

Earn the welcome bonus

You can jump-start your cash back earnings in the first months of card ownership by making sure you qualify for the welcome bonus. 

Currently, the Blue Cash Preferred® Card from American Express comes with a statement credit worth $250 if you spend $3,000on eligible purchases during the first 6 months from your account opening. But you might have been offered a different bonus, depending on when and how you applied.

Regardless of what you were offered, that bonus could be worth more than a year of the card’s annual fee by itself.

Learn the spending categories … and their limits

If you want to maximize the Blue Cash Preferred® Card from American Express, your first few months with the card are a great time to start building up your rewards balance.

Besides the welcome bonus, spending on the card’s bonus categories is the quickest way to rack up rewards dollars. The card currently offers:

• 6% cash back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%). Keep in mind that warehouse clubs and superstores like Target and Walmart are excluded.

• 6% cash back on select U.S. streaming subscriptions, including popular services like Netflix, Hulu, Spotify, Apple Music, ESPN+ and Kindle Unlimited.

• 3% cash back at U.S. gas stations

• 3% cash back on transit (including taxis/rideshare, parking, tolls, trains, buses and more)

• 1% cash back on other purchases

These rewards rates make the Blue Cash Preferred® Card from American Express one of our favorite cash back cards, but the categories come with limitations. 

If you want to maximize rewards value, keep in mind that you’ll earn just 1% on U.S. grocery purchases after you hit the $6,000 annual spending cap. And while the rewards rate on streaming subscriptions covers many of the most popular apps, it might not cover everything you use. If you want to make sure your service is covered, check with American Express.

Get the $84 Disney Bundle credit

If you’re looking to save on the costs of streaming, the Blue Cash Preferred® Card from American Express can help you cover it. 

The card offers a $7 monthly statement credit (up to $84 annually) for Disney Bundle subscriptions, which include Disney+, Hulu and ESPN+. To qualify, you need to enroll and spend at least $9.99 each month on an auto-renewing subscription using the card. 

While the monthly credit doesn’t cover the full cost of subscription, it’s a strong value for existing subscribers, and a possible reason for people who’ve been considering the Disney Bundle to start subscribing. 

Consider the 0% intro APR for big purchases

If you’re planning to make a big purchase and need time to pay it off, the Blue Cash Preferred® Card from American Express could also help you save money on interest charges.

The card offers a 0% intro APR on purchases and balance transfers for the first 12 months after account opening. But make sure to try to pay off your purchases and transfers before the intro APR expires, or you’ll be charged a variable regular APR of 18.24% - 29.24% on both.

Balance transfers must be requested within 60 days of account opening to qualify for the intro rate, and there’s also balance transfer fee: Either $5 or 3% of the amount of each transfer, whichever is greater.

While the balance transfer offer could be helpful for those carrying debt on other cards, we recommend that cardholders using the card for other benefits try to stick to the 0% intro purchase APR offer. In general, it’s a good idea not to use the same card for both new purchases and managing existing debt — juggling both balances can get complicated, and you could end up in more debt than when you started.

Next steps

Your Blue Cash Preferred® Card from American Express comes with other benefits, like purchase protection and return protection. But the perks we’ve called out above are most likely to help you find value early in your card membership. Once you start using your card more often, you might find it has some gaps you’d like to fill. For example, if you’re looking to maximize your rewards balance for redemptions, you may want to add another American Express card to improve on any rewards rates you get from this card.

While no single credit card is perfect for everyone, certain cards offer standout benefits that might better suit your needs. Whether you’re aiming to earn travel rewards, get cash back on everyday spending or decrease your debt, our list of the best credit cards for travel rewards, cash back and balance transfers can help you find one that fits your lifestyle and financial goals.

Best for premium travel perks: Platinum Card® from American Express

Here’s why: In addition to exclusive airport lounge access, the Platinum Card® from American Express offers a wealth of travel and lifestyle benefits that make it a great choice for frequent travelers. You’ll earn …

• 5 points per $1 on flights booked directly through airlines or the American Express travel portal (on up to $500,000 spent per calendar year, then 1 point per $1)
• 5 points per $1 on prepaid hotels booked with American Express Travel
• 1 point per $1 on all other eligible purchases

The card comes with a hefty $695 annual fee, so consider whether you’ll get enough value from the benefits and potential rewards before applying.

Best for budget-conscious travelers: Chase Sapphire Preferred® Card

From our partner

Chase Sapphire Preferred® Card

Chase Sapphire Preferred® Card

4.2 out of 5

994 reviews

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Here’s why: If you’re looking to boost your travel rewards, the Chase Sapphire Preferred® Card delivers excellent benefits for a modest annual fee of $95.

You’ll earn five points per $1 spent on travel booked through Chase Travel and two points per $1 on all other travel purchases with the card.

You’ll also earn three points per $1 on dining purchases, three points per $1 on online grocery purchases (excluding Target, Walmart and wholesale clubs), three points per $1 on select streaming services and one point per $1 for all other purchases.

Best for simple travel rewards: Capital One Venture Rewards Credit Card

From our partner

Capital One Venture Rewards Credit Card

Capital One Venture Rewards Credit Card

4.3 out of 5

73 reviews

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Here’s why: With its straightforward rewards program and annual fee of $95, the Capital One Venture Rewards Credit Card helps travelers to get great value from their purchases without a lot of extra effort.

You’ll earn two miles for every $1 you spend on purchases, plus five miles per $1 spent on hotels, vacation rentals and car rentals booked through Capital One Travel.

Best for simple cash back: Wells Fargo Active Cash® Card

Here’s why: The Wells Fargo Active Cash® Card is a good option for people who appreciate the simplicity of using a single card to earn rewards on every purchase.

Every purchase you make with the card earns a flat 2% cash back, regardless of the spending category. With an annual fee of $0, this card is a solid choice for everyday spending.

Best for cash back on dining and entertainment: Capital One Savor Cash Rewards Credit Card

From our partner

Capital One Savor Cash Rewards Credit Card

Capital One Savor Cash Rewards Credit Card

4.1 out of 5

101 reviews

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Here’s why: The Capital One Savor Cash Rewards Credit Card is an excellent option if you regularly spend on dining, entertainment and groceries and want rewards without a $0 annual fee.

Earn unlimited 3% cash back on dining, entertainment, popular streaming services and groceries. You’ll also get 8% cash back on Capital One Entertainment purchases and 5% back when booking hotels and rental cars through Capital One Travel. For all other purchases, you’ll get 1% cash back.

Best for flexible cash back: Citi Custom Cash® Card

From our partner

Citi Custom Cash® Card

Citi Custom Cash® Card

2.4 out of 5

288 reviews

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Here’s why: Without much effort, you can earn robust rewards on your top eligible spending category each month with the Citi Custom Cash® Card, which comes with an annual fee of $0.

You’ll earn 5% cash back on whichever eligible spending category was your highest during your monthly billing period — on up to the first $500 spent. Eligible categories for the 5% bonus include restaurants, gas stations, grocery stores, drugstores, home improvement stores, selected travel and transit, gyms and entertainment. After you’ve hit the spending cap, you’ll earn unlimited 1% cash back on purchases in your bonus category and all other purchases.

Best for paying down debt: Wells Fargo Reflect® Card

Here’s why: With a long introductory 0% APR offer on balance transfers, the Wells Fargo Reflect® Card could be a great way to save money on interest as you pay off card debt.

This card comes with 0% intro APR for 21 months months from account opening on purchases and balance transfers made within 120 days from account opening.  Keep in mind that the fee for a balance transfer is 5% (minimum $5) of the total balance transferred. Plus, after the intro period ends, the card’s APR for both balance transfers and purchases rises to a variable 17.24%, 23.74%, 28.99%.

This card has an annual fee of $0.

The American Express® Gold Card offers plenty of value in your first few months of card membership — but it will take some work to access all of it.

From the welcome bonus to the restaurant credits, this card features several ways to start earning back your $325 annual fee. But knowing how to access all the credits and perks is crucial to maximizing your value.

1. Earn the welcome bonus
2. Enroll to access the monthly dining credits
3. Activate your monthly Uber Cash
4. Sign up for Resy credits
5. Enroll to access the monthly Dunkin’ credits
6. Learn your bonus spending categories

1. Earn the welcome bonus

The best way to maximize the value of the American Express® Gold Card in your first few months of card ownership is to make sure you earn its welcome bonus.

Currently, the card offers a bonus of 60,000 Membership Rewards® points when you spend at least $6,000 in eligible purchases in the first 6 months after opening the account.

Those points are worth $600 when redeemed through AmexTravel.com, and possibly more if transferred to one of American Express’s partner programs. Your bonus points may even be enough to get you to your first travel redemption.

2. Enroll to access the monthly dining credits

One of the American Express® Gold Card’s best perks might require some extra consideration to earn full value.

You can earn up to $10 a month — $120 a year — in statement credits when you use your card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com and Five Guys.

To receive this credit, you must enroll online or call the number on the back of your card. And the credits don’t carry over, so you’ll need to make a qualifying purchase every month to get the full $120 annual value.

Depending on your current habits, this credit might not immediately seem useful to you. But if you place a delivery order through Grubhub once per month, you should be able to take full advantage.

3. Activate your monthly Uber Cash

You can get $10 in Uber Cash each month with your American Express® Gold Card, saving you up to $120 a year on Uber rides and Uber Eats.

This perk is a little easier to use — all you have to do is add your American Express® Gold Card as your payment method on your Uber or Uber Eats app. But like with the dining credit, unused value won’t carry over from month to month.

If you’re not in the habit of using Uber, this perk might not seem valuable. But you should be able to get the full value every month if you make one Uber Eats order or take one Uber ride.

4. Sign up for Resy credits

The American Express® Gold Card offers yet more value with restaurants with this benefit.

Make a dinner reservation through Resy and unlock up to $100 in statement credits each year (up to $50 from January through June and up to $50 from July through December) when you use your American Express® Gold Card. To enroll, you’ll need to visit your card account online or call the number on the back of your card.

There’s no guarantee that your favorite restaurant will be available on Resy — or that it’s used by many restaurants where you live — but this credit could be a nice way to try a new spot at a discount.

5. Enroll to access the monthly Dunkin’ credits

Dunkin’ devotees will appreciate this monthly credit (that also doesn’t roll over), which allows you to earn up to $7 in statement credits monthly for purchases made in the U.S. using your card. To get the benefit — up to $84 a year — enroll by calling the number on the back of your credit card.

Even if you don’t frequent Dunkin’, this credit could come in handy every so often if you’re in need of a drink or quick snack, even if only at an airport.

6. Learn your bonus spending categories

While activating and enrolling in the American Express® Gold Card’s perks and credits are great ways to maximize value right after getting the card, your first few months of card membership are also a great time to start building your rewards balance.

Apart from the welcome bonus, the best way to do that is by using your card whenever you spend in its bonus categories. You’ll earn:

• 4 points per $1 on restaurants worldwide plus takeout and delivery in the U.S. (on up to $50,000 in spending per year, then 1 point per $1)
• 4 points per $1 on groceries at U.S. supermarkets (on up to $25,000 in purchases per year, then 1 point per $1)
• 3 points per $1 on flights booked directly with airlines or on AmexTravel.com
• 2 points per $1 on other travel booked via AmexTravel.com
• 1 point per $1 on all other purchases

It’s possible that you have another card that gets you more value in one of these categories, and it won’t be right for everyone to shift all their spending to the American Express® Gold Card. But if you’re looking to maximize this card’s value over time, you’ll need to spend enough to keep a high point balance that you can redeem for travel.

Next steps

The American Express® Gold Card has other perks that can earn value, like a $100 experience credit at The Hotel Collection properties. But the benefits we’ve called out above are most likely to help you find value early in your card membership.

Once you start using your American Express® Gold Card more often, you might find that it has some gaps you’d like to fill. For instance, if you do a lot of driving, for example, you can save big on fill-ups with a gas credit card. Or if you’re looking to relax before boarding your next flight, you might want to check out the top credit cards for airport lounge access.

Credit Karma and TurboTax — both owned by parent company Intuit — offer a variety of tools and features that can help you manage your taxes and overall financial picture.

Both companies can also help you access cash quickly during tax season. We’ll review your options and how they work.

• How TurboTax works with Credit Karma
• Early refund options
• More tax tools

How TurboTax works with Credit Karma

Simplified tax filing

If you’re filing your taxes with TurboTax, the process is easier as a Credit Karma member. That’s because information from your Credit Karma account can be used to prefill your tax documents.  

Straightforward account creation

Credit Karma members will find a straightforward authentication process that links their existing account to TurboTax. By sharing its data with TurboTax, Credit Karma gives members the benefit of creating an account quickly and easily.

Special pricing and offers

Certain Credit Karma members who file their taxes using TurboTax through the Credit Karma app have access to special offers and pricing for tax filing — including features like Audit Defense, which represents filers in case of a state or IRS audit. 

Finding TurboTax in the Credit Karma app

To access TurboTax within the Credit Karma app, navigate to “Income and Taxes” from the three-line menu icon to find “Tax tools.” Then click on “File taxes” for an embedded version of TurboTax. Signing into TurboTax through Credit Karma keeps you within the Credit Karma app the whole time.

Fast funding options

Refund Advance loan through TurboTax

If you’re already an e-filer with TurboTax for your federal return, you could be eligible for a TurboTax Refund Advance — a short-term, no-cost loan.

You’ll have to apply, as with any other loan, but if approved, you’ll receive up to $4,000 in your Credit Karma Money™ Spend account — which is free to open if you don’t already have one.

When you file electronically, it’ll typically take 24 to 48 hours for the IRS to accept your return — and most filers receive their Refund Advance within 15 minutes of IRS acceptance.

You’ll be notified when your funds are available and can use Credit Karma’s mobile app to access your funds right away. You’ll also be sent a physical Credit Karma Visa® Debit Card. Note that Refund Advance, which is issued by First Century Bank, N.A. or WebBank, may not be available for all tax filers everywhere. You’ll want to check out the full terms and conditions before you apply.

Image: txed_ckturbotax-2-wip

Early refund access with Credit Karma Money™

Credit Karma members can get access to their tax refund up to five days early when they deposit it into their Credit Karma Money™ Spend account — no matter who prepares your taxes.

But you can’t double-down: If you file with TurboTax and choose to pay your tax preparation fee using your federal tax refund or take advantage of TurboTax Refund Advance, you’re ineligible for early refund access through Credit Karma.

More tax tools

Here are some other Credit Karma tools that can help you keep track of your filing status during tax season or help work on your finances.

Refund Tracker

If you created a new Credit Karma account or linked an existing one while filing your taxes through TurboTax — and you consented to data sharing — you can monitor the status of both your federal and state tax refunds on Credit Karma. 

The Refund Tracker appears soon after you file your federal tax return with TurboTax. When you want to take a look, you can log in to your Credit Karma account.

The IRS issues most refunds within 21 days of accepting your return, though it’s possible your tax return may require additional review and take longer to process.

If you’d prefer to get your information directly from the IRS, the agency maintains a refund tracker called “Where’s My Refund.” Although you’ll need some basic information and a bit of patience, you can start checking your refund’s status as early as 24 hours after the IRS accepts your e-filed return.

Tax Refund Estimator

Credit Karma’s Tax Refund Estimator can help you estimate your federal tax refund based on the information you provide about your income, deductions and credits.

Although the tool has been created for educational purposes only to give you a ballpark figure, you might be able to get an idea about your tax situation. This tool does not prepare or file your taxes for you.

It’s always a good idea to consult a tax professional for personalized advice on your taxes.

The Biden administration has rolled out a new repayment plan that slashes payments for millions of borrowers based on their income.

Called SAVE (Saving on a Valuable Education), the program calculates payments based on a borrower’s income and family size. People under a certain income threshold can get their monthly payments eliminated altogether pretty quickly, and most others under this program will see their payments cut in half in July.

SAVE replaces the current income-driven repayment plan known as REPAYE. Borrowers already on the REPAYE plan will be automatically enrolled in the SAVE plan. 

Key takeaway: You can go to the Federal Student Aid site to apply for the new SAVE program if you’re looking for student loan relief and aren’t already enrolled in REPAYE, the existing repayment program. The SAVE program could significantly cut or even eliminate your payments.

Who qualifies for SAVE?

Borrowers with federally held loans including direct subsidized, unsubsidized and consolidated loans can qualify for SAVE. SAVE is replacing the current income-driven repayment plan known as the Revised Pay as You Earn (REPAYE) program. Borrowers who are already on the REPAYE plan will be automatically enrolled in the SAVE plan.

Current and future borrowers with federal undergraduate or graduate loans are eligible. Parents who took out Parent PLUS loans cannot enroll in the new plan.

How is SAVE different from REPAYE?

More people will qualify for $0 payments

In the SAVE program, borrowers with discretionary income at 225% of the federal poverty guidelines or less won’t have to make payments. For an individual, that translates to about a $15 (or less) hourly wage or $32,800 or less annually. A family of four needs to make $67,500 or less annually.      

In the REPAYE program, the income ceiling for eligibility is 150% of the poverty guideline.

Others who don’t qualify for $0 payments could see their payments cut in half

Come July, most borrowers whose discretionary income is above 225% of the federal poverty guideline will see their monthly payments drop significantly. Specifically, the payment amount on undergraduate loans will be 5% of a borrower’s discretionary income (down from 10% as part of the REPAYE plan). Borrowers with graduate loan debt will pay 10% of discretionary income.

If you have both undergraduate and graduate debt, payments will be weighted accordingly.

Examples of estimated monthly payments under the SAVE plan

Source: U.S. Department of Education

A break on interest

If your monthly loan payment isn’t big enough under SAVE to cover the interest due, the Department of Education will give you a break on the uncovered portion.

For example, if a borrower owes $50 in interest each month but their new payment under the SAVE plan is $30 a month, then the remaining $20 of interest due for that month gets dropped (as long the $30 monthly payment is made).

Married borrowers can get a break, too

SAVE allows married borrowers who file their taxes separately to base their monthly student loan payments on their own income, rather than their combined income. This means spouses no longer need to co-sign income-driven payment plan applications.

Quicker loan forgiveness

Starting in July, borrowers with original undergraduate student loan balances of $12,000 or less will get their loans forgiven after just 10 years of making monthly payments — rather than 20 years under REPAYE.

Each additional $1,000 borrowed above $12,000 would add one year of payments before eligibility for forgiveness. For example, if a borrower’s original principal balance was $14,000, they would have their loans forgiven after 12 years.

How to sign up for SAVE

• REPAYE transition. If you’re already on the REPAYE plan, you’ll be automatically enrolled in SAVE and see your payments adjusted.
• SAVE application. If you haven’t applied for an income-driven repayment plan, you can find out more about SAVE and apply from the Department of Education’s Federal Student Aid website. After applying, you can check the status of your application on your account dashboard.
• If your loans are in default, eligible borrowers can return their loans into good standing and enroll in the SAVE program. See the Department of Education’s Fresh Start program.

You can also go to Credit Karma’s student loan resource page to get a handle on your student loans and understand what you owe, who your loan servicer is and what your options are for managing repayment.

If you accept business payments from apps like Venmo or PayPal, you may be getting a new tax form in early 2025.

After a two-year delay, the IRS is requiring services like Venmo, Cash App and other online payments platforms to issue a 1099-K — the form documenting income received via third-party networks and from payment cards — to anyone who received more than $5,000 of total payments in 2024.

As part of a phased-in approach by the IRS, the reporting threshold will be lowered to earnings of more than $2,500 in 2025, then more than $600 in 2026.

The new rule doesn’t apply to personal payments between friends and family for things like shared meals or bills. It’s aimed at people with side jobs or small businesses who collect money online and may not be reporting the income as required.   

Here’s what to know about the updated 1099-K rules, plus tips to consider ahead of the changes.

• New requirements for 1099-K reporting
• Who is required to file?
• How to prepare to file taxes

New requirements for 1099-K reporting

The IRS, which estimates unreported income of nearly $166 billion through payments on peer-to-peer apps like Venmo and PayPal, is using the new requirement to help close this “tax gap,” or money owed to the government that goes unpaid. The change is being phased in beginning tax year 2024 as part of the American Rescue Plan Act of 2021.

Under IRS plans to phase-in the new rule, payment processors like Cash App, Venmo and PayPal along with platforms like eBay and Etsy will have to send a 1099-K tax form to users with more than $5,000 in any number of transactions for goods or services in 2024.

Making sense of Form 1099-K

You can expect to receive a Form 1099-K from third-party networks or financial institutions for income you earned through the platforms the previous year. Under IRS rules, you’re supposed to report any income listed on your Form 1099-K from your business — including things like selling items on eBay or mowing lawns in your neighborhood — on your income tax return.

Who is required to file?

If you earn income outside of a full-time job and get paid via Venmo, PayPal or Cash App, or other types of third parties, you should refer to your Form 1099-K to determine what income to declare.  

This includes payments for personal items you sold, services you provided or property you rented through …

• Peer-to-peer payment platforms or digital wallets
• Online marketplaces
• Craft or maker marketplaces
• Auction sites
• Car sharing or ride-hailing platforms
• Real estate marketplaces
• Ticket exchanges or resale sites
• Crowdfunding platforms
• Freelance marketplaces

Gift money from friends and family or reimbursements for personal expenses don’t have to be reported since they aren’t considered taxable income.

Zelle doesn’t report to IRS

Unlike its competitors, Zelle facilitates direct bank-to-bank transfers — and the company says it won’t be providing 1099-K forms to customers.

But if you’re using Zelle for business payments, you’re still required to report any income you receive via the platform that may be taxable — if you’re unsure what to report, it’s a good idea to reach out to a tax specialist.

How to prepare to file taxes

Because of the new IRS requirement, more taxpayers are likely to receive Form 1099-K for tax year 2024. You can be proactive by carefully tracking your transactions and planning for them to be reflected as part of your tax bill.

Save for taxes or make payments

Income taxes must generally be paid as you earn or receive income throughout the year, either through withholding or estimated tax payments. If you’re in business for yourself, you generally need to make estimated tax payments.

Keep good records

If you expect to receive a Form 1099-K, be sure to keep updated records of your transactions, balance sheet and other financial documents. Otherwise, inaccuracies when filing could trigger an IRS audit.

If you receive some or even all of your business income through a peer-to-peer payment platform, it’s a good idea to set up separate third-party platforms for business and personal transactions. If the transactions are intermingled, it will be tougher to separate business and personal payments.

Next steps

The new reporting requirement planned for tax year 2024 is expected to generate a flood of additional 1099-K forms as the lower reporting threshold affects more taxpayers. If you’re a gig worker or own a small side business, you may want to consider reaching out to a professional bookkeeper or accountant to help understand what your tax liability might be.

If you take steps now to prepare, you can be more confident about filing an accurate return and avoid processing delays.

Summer vacations can burn through your budget, but there are plenty of ways to cut costs on your next trip. Read on for tips and strategies that can help you get the most bang for your buck.

Tips for saving money on air travel and hotels

1. Book your flights in advance

Most airlines only offer a limited number of seats on popular flights at lower fares. These deals often sell out quickly, so it’s important to book your flight as soon as possible. Don’t fret if you waited — sometimes those flights don’t book up and you can find last-minute deals.

2. Be flexible with your travel dates

Avoid flying on peak travel days, such as holidays. The best deals for traveling might be found on Tuesday through Thursday or Friday night through Sunday morning. You might also be able to cut costs by flying out late at night. Seasonality, holidays, major events and weather can also cause hotel room rates to fluctuate.

3. Use a travel search engine

A travel search engine like Google Flights or Kayak can help you compare prices from different airlines. And Google Flights has a price alert feature that allows you to track the price of a flight and be notified when the price changes.

4. Use a travel agent

While it might seem outdated, a travel agent can still help you find the best deals on flights, hotels and other travel. There’s typically no fee for you because a travel agent receives a commission from the airline. They can also find discounted flights by working with consolidators (companies that buy blocks of seats at a discounted rate).

5. Pay with points

Regular purchases on a travel credit card can accrue points and miles every time you swipe. You can turn around and redeem your rewards for airfare, hotels and other travel expenses. Just keep in mind that it may take a while to save up enough rewards for a trip. You can also earn a lot of points upfront by using a card with a one-time sign-up bonus.

6. Enroll in a frequent-flier program

Frequent-flier programs reward you for flying with a particular airline or group of airlines. The best airline rewards programs let you earn miles for your travel and redeem those rewards for flights. You can also redeem miles for food and beverage perks or an upgrade.  

7. Take advantage of special discounts

Several airlines offer reduced fares to older adults. The age requirement for these discount fares varies by airline but is typically 65 or older. British Airways offers flight savings for AARP members. A number of carriers — including Alaska Airlines, American Airlines and Delta Air Lines — offer military travel benefits to active-duty service members in some markets. If you’re a student, you may qualify for discounts offered by airlines such as Lufthansa and Qatar Airways. And United Airlines offers 5% discounts for travelers between 18 and 23 years old who book on the United app.

8. Fly with a budget airline

Budget airlines offer lower fares than traditional carriers, but they may charge extra for things baggage fees, meals and seat assignments.

9. Sign up for email alerts from airlines, hotels and travel websites

Airlines, hotel and travel websites often send out email alerts with info about special deals and promotions.

10. Consider flying into an alternate airport

When flying to a large metro area with multiple airports, the fare could be cheaper at one airport versus another. Check on alternate airports and routings when pricing a ticket.

11. Travel during the off-season

You may be able to find cheaper flights, cheaper hotels and fewer crowds by traveling during the off-season.

12. Pack light

The less luggage you bring, the less you may have to pay in baggage fees — especially for international flights.

What’s next?

Air travel can be expensive, but there are plenty of ways to cut costs. Saving money in other areas could also help put a little more cash in your pocket for upcoming travel.

Working a travel fund into your budget can also help you set aside a little at a time so that you don’t have to come up with a lot of cash all at once.

The U.S. Supreme Court has rejected President Biden’s student loan forgiveness plan, dashing the hopes of millions of Americans that it would wipe out all — or at least some — of their federal student loan debt.

Nearly 45% of student loan borrowers — about 19 million people — would have had their federal student loan debt fully canceled under the plan.

The Supreme Court decision came just weeks after Biden signed a debt-ceiling law that contained provision to end a three-year, interest-free payment pause on student loans. With the end of pandemic-related relief, interest on federal student loans will begin accruing in September and payments will resume in October.

Key takeaway: The Supreme Court has struck down President Biden’s loan forgiveness plan. To get ready for the restart of payments in October, take a look at our student loan resource page to explore options.

Student loan relief explained

About 43 million borrowers hold more than $1.6 trillion in student loan debt. Before Biden’s plan was put on hold, about 26 million people applied for debt relief and 16 million applications were approved, the White House said.

What to know

• Key benefits — Biden’s executive order would have eliminated $10,000 in debt for individuals earning less than $125,000 a year (or for married couples earning less than $250,000 who file jointly) and $20,000 for those who received Pell grants.
• Why it failed — The Supreme Court ruling said the Biden administration didn’t have the authority to enact the broad debt-forgiveness plan as part of the COVID-19 emergency.
• Price tag — The program would have cost about $400 billion over the next 30 years, according to the Congressional Budget Office.

Preparing for student loan repayments

With the moratorium on student loan repayments ending, now is the time to revisit your finances and prepare for making payments again.

What you can do

• Contact your servicer. Your loan servicer can discuss options with you and help you stay in good standing with your loans. If you’re uncertain who services your student loan, you can find out with this Federal Student Aid resource.
• Verify payment info. When reviewing your loan information, make sure your address and other contact info is up to date.
• Make a plan. If you can, start making room in your budget for the restart of loan payments. If you think you’ll have trouble making payments, you can explore repayment options, including income-driven repayment plans. Check out the loan simulator tool at StudentAid.gov to see which option best meets your needs.
• Consolidate your loans. Federal student loan holders can apply for a direct consolidation loan, which combines your student loans into one from a single lender and one monthly payment.
• Consider Fresh Start. Under the Department of Education’s Fresh Start program, borrowers with defaulted student loans can opt to resume payments with their loans in good standing.
• Look into deferment or forbearance. Under certain circumstances, you may be able to defer your federal loans for up to three years. If you don’t qualify for deferment, you may be eligible for forbearance, which can postpone or reduce your payments for up to 12 months.

Under a new fee structure, some homebuyers with strong credit will now pay more than before for conventional mortgages backed by Fannie Mae and Freddie Mac, while some buyers with weaker credit will pay less.

Overall, borrowers with strong credit will still generally pay much less than people with weaker credit. But the fee restructuring by the Federal Housing Finance Agency caused a stir, with some critics saying the changes seem to punish applicants with strong credit.

Key takeaway: Whatever shape your credit’s in, if you’re looking into a federally backed mortgage, you’ll want to check how the FHFA’s new fee structure figures into your upfront homebuying costs.

Key facts about the new FHFA mortgage fee structure

The FHFA has updated the matrix of upfront fees for purchase loans, limited cash-out refinances and cash-out refinance loans backed by Fannie Mae and Freddie Mac. The fees, known as LLPAs (loan-level price adjustments) are typically converted into percentage points that alter the buyer’s mortgage rate.

The new fee structure …

• Went into effect May 1
• Will only impact loans originating at private banks across the U.S., not federal loans like FHA, VA or USDA loans
• Will have some — but not all — people with strong credit paying higher fees than before, and some but not all people with weaker credit paying lower fees than before. The equation depends on down payment size.
• Generally, if you have strong credit, you’ll still pay a lot less in fees than people with weaker credit.
• In fact, for people with the highest scores (780 and up), fees went down or stayed the same in most cases.

What the changes mean for mortgage affordability

Here’s an example of how the changes have a higher-score borrower paying more than before, and a lower-score borrower paying less. In this scenario, both make a 20% down payment on a $300,000 loan.

Higher-score applicant — Before, someone with a credit score in the 760 to 779 range would have paid an upfront fee equal to 0.250% of their loan amount, or $750. Under the new structure, the fee jumps to 0.625% — or $1,875.

Lower-score applicant — Before, someone with a credit score between 640 and 659 would have had a 2.750% fee added to the base mortgage rate, or $8,250. That fee drops to 2.250% — or $6,750 — under the new fee structure.

The lower-score applicant gets a significant break under the new scheme but still pays more than four times as much as the higher-scoring borrower.

Some critics accuse the FHFA of charging some borrowers with strong credit scores more to pay for the fee decreases for lower-scoring homebuyers. But the FHFA says the new structure more accurately reflects current risk for all credit profiles — better protecting banks — while promoting more equitable access to homeownership.

Tips for mortgage shopping

To ease the loan approval process and give yourself the best chance at lower fees and better mortgage rates, take time to get your finances in order.

• Check your credit reports and scores. Make sure there are no errors pulling your scores down. You can dispute an error on your credit report with the credit bureaus.
• Improve your debt-to-income ratio. Earning more money or paying off debts — or both — can help you qualify for a bigger mortgage.
• Up your down payment. You may qualify for a mortgage with a small down payment, but a bigger one reduces your principal balance on the loan, saving you money over the term of the mortgage. You also might not have to pay for private mortgage insurance.
• Shop around. Every lender has different guidelines and interest rate options, which can have a big effect on your monthly payments. Getting multiple quotes may give you negotiating power and will help you choose the best mortgage lender for your situation.

If you’re thinking about selling your home, one of the factors you’re probably considering is how much money you could make on the sale.

To calculate that, you’ll need to understand what your home could be worth, along with the costs of selling a house, like real estate commissions, closing costs and taxes.

An example in the table that follows gives you a quick snapshot of how to calculate possible profits from selling a home. We’ll also dig in a little deeper below.

Image: calculating-net-proceeds-from-a-home-sale

How to calculate net proceeds from a home sale

Net proceeds are the profits a home seller keeps after all fees, commissions and closing costs have been paid. Besides real estate agent commissions, some other common closing costs for sellers include transfer taxes, seller credits and attorney fees. Keep in mind that you’ll have to pay off the remainder of your mortgage to your lender as well.

Here’s a quick way to do the math.

Image: hl_homeproceeds

Learn more about the costs of selling a house.

How much is my home worth?

If you want to get a ballpark figure of how much your home is worth, you can look at comparable homes recently sold in your neighborhood or consult a real estate agent to get their opinion.

Here are some other options to consider.

With inflation at its highest level in decades, a growing number of Americans are delaying important medical treatments because of the costs, recent surveys find.

Here are some key findings from a 2022 Gallup poll and a 2022 survey by The Kaiser Family Foundation.

• 38% of Americans said they or a family member delayed or went without medical care because of financial reasons, according to Gallup — up 12 percentage points from 2021 and the highest in the 22 years Gallup has been tracking the trend.
• Of that group, 27% say the medical treatment they put off was for a “very” or “somewhat serious” condition.
• 41% of Kaiser survey respondents reported having medical debt owed to credit card companies, collections agencies, family and friends, banks and other lenders.

We’ll take a closer look at how people are coping with the cost of medical care, who has been most affected and tips to help lower your medical costs.

Key takeaway: About 40% of Americans say they or a family member skipped medical care in 2022 because of cost concerns, recent polls found.

Difficulty affording medical costs

Young adults and those in lower-income households were most likely to report that they or a family member had delayed medical treatment.

What to know

• Doing without — People are most likely to put off dental care, vision services and visits to a doctor’s office, the Kaiser survey found.
• Prescription woes — About a quarter of adults say they or family member in their household have left a prescription unfilled, cut pills in half or skipped doses of medicine because of the cost, according to Kaiser.
• Income plays a role — Americans with household incomes under $40,000 were almost twice as likely as those making $100,000 or more to report that they or a family member delayed care for a serious medical condition, according to the Gallup survey.
• Age factor — Among adults ages 18 to 49, 35% said they or someone in their family delayed care, Gallup said. Meanwhile, 25% of those ages 50 to 64 and 13% of those 65 and older reported putting off care.

Steps to lower your healthcare costs

When patients skip preventive care and screenings, they risk allowing existing conditions to worsen even if they may have been easier and more affordable to treat if detected earlier.

What you can do

• Reach out for help with costs. There are a number of charitable organizations that can assist with healthcare costs. Copays.org offers assistance to qualified patients for copays, premiums, deductibles and over-the-counter medications.
• Shop for prescriptions. Use reputable online sites for medication price comparisons.
• Get help paying medical bills. If you need help, you may be able to work out a payment plan with your healthcare provider, negotiate the amount you owe, or qualify for a financial assistance program.
• Consider free assistance. The Patient Advocate Foundation can help you understand and negotiate your medical bills, free of charge. It also offers a copay relief program. Contact the organization at 800-532-5274.
• Seek free and low-cost options. If you can’t afford a health plan and don’t qualify for coverage through Medicaid and the Children’s Health Insurance Program, you can find low-cost treatment at a community health center by visiting HealthCare.gov.